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MethodFinance & AccountingPlanning & modellingStarter

Run a break-even analysis

Break-even units and revenue, margin of safety and a what-if table for price and cost changes.

This is a practical, copy-paste process for pricing a new product.. Use it when you want a clear structure, then add your own details and the linked evidence.

Published by Deepstory Research. Reviewed Sep 2026.

How to use this method

  1. 1. Copy or downloadCopy the prompt below, or download the method file and attach it to your chat.
  2. 2. Paste into any AIChatGPT, Claude, Gemini or Copilot. Replace each [PLACEHOLDER] with your details, or let the AI ask you.
  3. 3. Add evidenceAttach the evidence files listed on this page so the AI works from sourced numbers, not guesses.

The prompt

Paste it as-is. The AI will ask for anything still in [BRACKETS].

Download .md
# Run a break-even analysis
Method by Deepstory Research: deepstoryresearch.com/method/break-even-analysis

You are a small-business finance advisor. Follow the method below step by step. Goal: Break-even units and revenue, margin of safety and a what-if table for price and cost changes.

## My inputs
- Price per unit: [PRICE_PER_UNIT]  (example: ₹450)
- Variable cost per unit: [VARIABLE_COST_PER_UNIT]  (example: ₹180)
- Fixed costs per month: [FIXED_COSTS_PER_MONTH]  (example: ₹3.2 lakh)
- Expected volume: [EXPECTED_VOLUME]  (example: 1,500 units/month)

Before you start: if any input above is still in [BRACKETS] or missing, ask me for it in one short numbered list and wait. Do not guess. If I attached files (data, briefs, Deepstory evidence files), treat them as the primary source.

## Steps to follow
1. Compute contribution margin per unit and ratio.
2. Compute break-even units and revenue.
3. Compute margin of safety at expected volume.
4. Build a what-if grid on price and variable cost.
5. Explain the result in two sentences.

## Deliver the output in this structure
- Calculation
- What-if grid
- Plain-English conclusion

## Quality rules
- Show units on every number.
- Label every number as FACT (with source and date), ESTIMATE (show the calculation) or ASSUMPTION.
- If a Deepstory evidence file is attached, use its figures as the reference values and cite its source references; tag claims that are not from it as [UNVERIFIED].
- End with: the 3 assumptions that matter most, what would change the answer, and the single best next step.

What you need to give the AI

InputPlaceholderExample
Price per unit[PRICE_PER_UNIT]₹450
Variable cost per unit[VARIABLE_COST_PER_UNIT]₹180
Fixed costs per month[FIXED_COSTS_PER_MONTH]₹3.2 lakh
Expected volume[EXPECTED_VOLUME]1,500 units/month

Use it when

  • Pricing a new product.
  • Checking if a new location or line can pay for itself.

What you get

  • Calculation
  • What-if grid
  • Plain-English conclusion

The procedure, step by step

Read this before you run it, so you can check the AI actually followed the method.

  1. 1

    Compute contribution margin per unit and ratio.

  2. 2

    Compute break-even units and revenue.

  3. 3

    Compute margin of safety at expected volume.

  4. 4

    Build a what-if grid on price and variable cost.

  5. 5

    Explain the result in two sentences.

Quality checks built into the prompt

  • • Show units on every number.
  • • Every number labelled FACT, ESTIMATE or ASSUMPTION; claims outside attached evidence tagged [UNVERIFIED].

Evidence to use with this method

Methods tell the AI how to think. Evidence gives it sourced numbers to think with. Download a context file and attach it with the prompt.

EvidenceFinance

US Inflation & the Fed

The full 2026 inflation story on one page: the CPI path and category breakdown, the mid-year turn and the still-rising core PCE outlook, and the Fed’s rate response — fed funds, the 10-year Treasury, and the 30-year mortgage.

Open evidenceDownload context file

Run next

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MarketingSet a pricing strategyPricing model, price points, packaging tiers and a test plan grounded in value and competition.Business Strategy & PlanningWrite a business planA complete, lender- or investor-ready business plan with market, model, operations, team and financials.Finance & AccountingBuild a startup financial modelA driver-based 3–5 year model (revenue, costs, hiring, cash, runway) laid out so you can build it in a spreadsheet.Finance & AccountingBuild a 13-week cash-flow forecastA weekly direct cash forecast showing receipts, payments, closing cash and the week you run short.

Deepstory methods are process guidance for AI tools. Review AI output before relying on it; legal, tax, medical and investment decisions need a qualified professional.